Capitalism grows more socially conscious.Recent trends suggest that both corporations and investors are taking socially responsible investing Socially responsible investing describes an investment strategy which combines the intentions to maximize both financial return and social good. In general, socially responsible investors favor corporate practices which are environmentally responsible, support workplace diversity, (SRI) more seriously. A study released by the Social Investment Research Analysts Network on July 11 reveals that 34 companies listed on the S & P 100, a weighted index of 100 major blue chip companies, now base their corporate social responsibility (CSR (1) (Customer Service Representative) A person who handles a customer's request regarding a bill, account changes or service or merchandise ordered. Agents in call centers are known as CSRs. See call center. ) reports on a recognized third-party standard: the Global Reporting Initiative's Sustain-ability Reporting Guidelines. The use of uniform reporting criteria is critical to helping SRI firms select appropriate companies in which to invest. Other indicators similarly point to corporations' greater embrace of social responsibility: according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the same study, 79 of the S & P 100 firms now have CSR websites, up 34 percent from last year. The growth of CSR among major corporations has been spurred by a parallel development in social consciousness among investment firms. In April, the United Nations launched its new Principles for Responsible Investment, a series of guidelines on how to integrate environmental, social, and corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. issues into the finance industry. As of August 1, the diverse signatories to the Principles together controlled more than US$5 trillion in assets. This enormous quantity of money, expected to grow as the initiative wins new adherents, will make SRI central to the practices of the financial investment industry. According to the Washington, D.C.-based Social Investment Forum, US$2.29 trillion was managed under SRI funds in 2005--US$20 billion more than in 2003, and an estimated 9.4 percent of total global assets. More significantly, there has been a qualitative shift from individual or marginal investors to larger institutional investing firms, such as government pensions. As a group, institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. control most publicly traded companies publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. in industrialized in·dus·tri·al·ize v. in·dus·tri·al·ized, in·dus·tri·al·iz·ing, in·dus·tri·al·iz·es v.tr. 1. To develop industry in (a country or society, for example). 2. countries, wielding immense power. [GRAPHIC OMITTED] Experience shows that SRI can be as profitable as more traditional enterprises, while most analysis shows little or no difference in performance between SRI and non-SRI funds. A number of SRI funds have even surpassed the standard stock market indices Commonly used stock market indices include: Global Large companies not ordered by any nation or type of business (in alphabetical order).
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